Latest news with #CalvinMcDonald
Yahoo
3 days ago
- Business
- Yahoo
Lululemon sees Q1 FY25 revenue surge, exceeding expectations
Canadian athletic apparel retailer Lululemon athletica has reported growth across channels, categories and markets including the US in the first quarter (Q1) of fiscal 2025 (FY25), which concluded on 4 May. The company saw a 7% increase in net revenue to $2.4bn - an 8% rise on a constant dollar basis. This growth was particularly strong internationally, with net revenue surging 19%, or 20% on a constant dollar basis. In the Americas, net revenue grew 3%, or 4% on a constant dollar basis. Comparable sales across the company rose 1%, despite a 2% decrease in the Americas, which adjusted to a 1% drop on a constant dollar basis. Conversely, international comparable sales jumped 6%, or 7% on a constant dollar basis. The company's gross profit saw an 8% increase to $1.4bn, with gross margin expanding by 60 basis points to 58.3%. Income from operations showed a modest 1% rise to $438.6m, with operating margin declining by 110 basis points to 18.5%. The effective income tax rate for the quarter was slightly higher at 30.2%, compared to 29.5% in the same quarter of the previous year. Lululemon athletica CEO Calvin McDonald stated: "In the first quarter, we achieved growth across channels, categories and markets including the US, reflecting the continued strength and agility of our business model. Guests responded well to the product innovations, newness and brand activations we delivered around the world. As we navigate the dynamic macroenvironment, we intend to leverage our strong financial position and competitive advantages to play offence, while we continue to invest in the growth opportunities in front of us." Diluted earnings per share (EPS) for the quarter were reported at $2.60, up from $2.54 in the Q1 2024. Lululemon added three net new company-operated stores, bringing the total to 770. In the second quarter (Q2) of 2025, the brand expects net revenue to range between $2.54bn and $2.56bn - growth of 7% to 8%. For the full year 2025, the company maintains its net revenue forecast at between $11.15bn and $11.30bn, representing a growth of 5% to 7%, or 7% to 8% when excluding the 53rd week of 2024. Diluted EPS is expected to be between $14.58 and $14.78. Lululemon athletica chief financial officer Meghan Frank stated: "Looking ahead, we remain focused on our strategy and continue to operate with discipline as we drive the business forward. We are grateful to our teams around the world who are enabling us to deliver these consistent results." "Lululemon sees Q1 FY25 revenue surge, exceeding expectations" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Lululemon analysts reboot stock price target after earnings
Lululemon analysts reboot stock price target after earnings originally appeared on TheStreet. Now that was a real lulu. The dictionary tells us that the slang term "lulu", which dates to the 1850s, can be used to describe a person or thing "outstanding for some quality." 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰 That quality can be positive or negative, and for Lululemon () it translated into about 5 pounds of oy vey in a two-pound bag. Shares of the Vancouver athleisure giant nosedived on June 6 after it beat Wall Street's first-quarter-earnings expectations but slashed its full-year guidance, citing a 'dynamic macroenvironment' that included increased competition and the impact of the Trump administration's tariffs. "The current tariff paradigm has brought uncertainty into the retail environment," Chief Executive Calvin McDonald told analysts during the earnings call. "As consumers try to assess the impact they will have on daily life, as businesses evaluate these impacts as well, I believe we are better positioned than most to navigate the near term while also maintaining our focus on investing in our growth potential over the long term," he added. Chief Financial Officer Meghan Frank said Lululemon estimated a thinner operating margin, which measures profitability by dividing a company's operating income by its net sales for the full year. It now expects a narrowing of 1.6 percentage points, compared with the previous estimate of 1 point, "all driven by the net impact of tariffs." More Retail Stocks: Halloween retailer sounds warning consumers need to hear Target expands same-day delivery to 100s of retailers Walmart makes surprise cuts as it looks at tariff price hikes "We are planning to take strategic price increases, looking item by item across our assortment as we typically do, and it will be price increases on a small portion of our assortment, and they will be modest in nature," she said. Comparable sales in the quarter rose 1% from a year earlier, missing analysts' forecasts calling for a 3% increase. The result reflects a 2% decrease in the Americas and a 6% increase internationally. "We're definitely not happy where the growth is in the U.S., but relative to the market and our performance versus others, pleased that we're putting on share, pleased with the reaction to the newness and with the mix of newness that's coming," McDonald said. Lululemon is known for advanced athletic apparel, particularly its workout leggings, and it is said to use "holistic guerrilla marketing" to make customers feel that they are part of a community. In April, President Donald Trump unleashed a broad range of tariffs that he has since paused and rebooted several times, causing widespread confusion among companies and consumers and in the markets. Several retailers have reduced or withdrawn their guidance and indicated that they would raise prices due to the uncertainty surrounding the tariff regime. Meanwhile, Trump said that Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick would travel to London along with U.S. Trade Representative Jameson Greer on June 9 for renewed trade talks with China, adding that "the meeting should go very well."Lululemon's stock sank nearly 20% on June 6. The shares are off 31% in 2025 and down roughly 18% from a year earlier. Several investment firms issued research reports on Lululemon following the earnings report, including Needham, which lowered its price target to $317 from $366 and affirmed a buy rating on the shares, according to The Fly. The company posted fairly lackluster Q1 results, though the selloff in the stock seems "aggressive" relative to the size of management's guidance cut, the investment firm said. That's particularly since the guidance reduction is mostly tariff-driven, and also considers that management struck an encouraging tone about how new products are performing, Needham said. Lululemon's domestic business remains sluggish, however, while international comparable-sales growth slowed in Q1, likely raising questions about the growth algorithm going forward, Needham added. Telsey Advisory analyst Dana Telsey pared the firm's price target on Lululemon to $360 from $385 and maintained an outperform rating. The Q1 results "nicely topped" the Wall Street consensus and the company's guidance, Telsey said. Consumers continue to respond well to newness and new-product launches, Tesley added. BMO Capital lowered its price target on Lululemon to $250 from $302 and maintained a market-perform rating. The company reported what the investment firm called a slight top- and bottom-line beat to estimates, with better gross margins partly offset by a miss of estimates for selling, general and administrative expense. But looking ahead, BMO Capital said, management guided in Q2 "materially below" estimates and pared the fiscal 2025 outlook for gross margin and earnings due to tariffs and markdowns. This marks the first time the company has lowered its fiscal-year earnings forecast at Q1 since fiscal 2014, BMO Capital analysts reboot stock price target after earnings first appeared on TheStreet on Jun 7, 2025 This story was originally reported by TheStreet on Jun 7, 2025, where it first appeared.
Miami Herald
4 days ago
- Business
- Miami Herald
Lululemon analysts reboot stock price target after earnings
Now that was a real lulu. The dictionary tells us that the slang term "lulu", which dates to the 1850s, can be used to describe a person or thing "outstanding for some quality." Don't miss the move: Subscribe to TheStreet's free daily newsletter That quality can be positive or negative, and for Lululemon (LULU) it translated into about 5 pounds of oy vey in a two-pound bag. Shares of the Vancouver athleisure giant nosedived on June 6 after it beat Wall Street's first-quarter-earnings expectations but slashed its full-year guidance, citing a "dynamic macroenvironment" that included increased competition and the impact of the Trump administration's tariffs. "The current tariff paradigm has brought uncertainty into the retail environment," Chief Executive Calvin McDonald told analysts during the earnings call. "As consumers try to assess the impact they will have on daily life, as businesses evaluate these impacts as well, I believe we are better positioned than most to navigate the near term while also maintaining our focus on investing in our growth potential over the long term," he added. Chief Financial Officer Meghan Frank said Lululemon estimated a thinner operating margin, which measures profitability by dividing a company's operating income by its net sales for the full year. It now expects a narrowing of 1.6 percentage points, compared with the previous estimate of 1 point, "all driven by the net impact of tariffs." More Retail Stocks: Halloween retailer sounds warning consumers need to hearTarget expands same-day delivery to 100s of retailersWalmart makes surprise cuts as it looks at tariff price hikes "We are planning to take strategic price increases, looking item by item across our assortment as we typically do, and it will be price increases on a small portion of our assortment, and they will be modest in nature," she said. Comparable sales in the quarter rose 1% from a year earlier, missing analysts' forecasts calling for a 3% increase. The result reflects a 2% decrease in the Americas and a 6% increase internationally. "We're definitely not happy where the growth is in the U.S., but relative to the market and our performance versus others, pleased that we're putting on share, pleased with the reaction to the newness and with the mix of newness that's coming," McDonald said. Lululemon is known for advanced athletic apparel, particularly its workout leggings, and it is said to use "holistic guerrilla marketing" to make customers feel that they are part of a community. In April, President Donald Trump unleashed a broad range of tariffs that he has since paused and rebooted several times, causing widespread confusion among companies and consumers and in the markets. Several retailers have reduced or withdrawn their guidance and indicated that they would raise prices due to the uncertainty surrounding the tariff regime. Meanwhile, Trump said that Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick would travel to London along with U.S. Trade Representative Jameson Greer on June 9 for renewed trade talks with China, adding that "the meeting should go very well." Related: Lululemon's latest viral product reveals something much bigger Lululemon's stock sank nearly 20% on June 6. The shares are off 31% in 2025 and down roughly 18% from a year earlier. Several investment firms issued research reports on Lululemon following the earnings report, including Needham, which lowered its price target to $317 from $366 and affirmed a buy rating on the shares, according to The Fly. The company posted fairly lackluster Q1 results, though the selloff in the stock seems "aggressive" relative to the size of management's guidance cut, the investment firm said. That's particularly since the guidance reduction is mostly tariff-driven, and also considers that management struck an encouraging tone about how new products are performing, Needham said. Lululemon's domestic business remains sluggish, however, while international comparable-sales growth slowed in Q1, likely raising questions about the growth algorithm going forward, Needham added. Telsey Advisory analyst Dana Telsey pared the firm's price target on Lululemon to $360 from $385 and maintained an outperform rating. The Q1 results "nicely topped" the Wall Street consensus and the company's guidance, Telsey said. Consumers continue to respond well to newness and new-product launches, Tesley added. BMO Capital lowered its price target on Lululemon to $250 from $302 and maintained a market-perform rating. The company reported what the investment firm called a slight top- and bottom-line beat to estimates, with better gross margins partly offset by a miss of estimates for selling, general and administrative expense. But looking ahead, BMO Capital said, management guided in Q2 "materially below" estimates and pared the fiscal 2025 outlook for gross margin and earnings due to tariffs and markdowns. This marks the first time the company has lowered its fiscal-year earnings forecast at Q1 since fiscal 2014, BMO Capital said. Related: Fund-management veteran skips emotion in investment strategy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Daily Mail
5 days ago
- Business
- Daily Mail
Lululemon sees stock plunge 20% as brand says it will raise prices
Lululemon's shares plunged 20 percent on Friday as the athleisure brand reels from the consequences of Trump's tariffs — and said it would up prices on some of its products. The brand — which has earnt a cult following among millennial and Gen Z exercise enthusiasts — beat Wall Street's expectations for its first quarter earnings, but cut its guidance for the rest of the year. Sales were only up 1 percent year over year, compared to the 3 percent predicted by analysts. The company said the 'dynamic macroenvironment' of tariffs and concerns about an economic downturn meant it has to readjust. This will involve 'strategic price increases' to offset the negative effects of tariffs, chief financial officer Meghan Frank told analysts on the first quarter earnings call. 'It will be price increases on a small portion of our assortments, and they will be modest in nature,' she said. The company has already faced criticism for the price of some of its items , including $128 yoga pants. The price hikes will begin within a matter of weeks, Frank added. CEO Calvin McDonald said he was 'not happy' about US growth figures and acknowledged that consumers are nervously pulling back their spending. Lululemon has been hit hard by Trump's trade policies as it sources from China, currently under a 30 percent tariff, and a range of other countries currently levied at 10 percent. Last year 40 percent of the company's products were manufactured in Vietnam, 17 percent in Cambodia and 11 percent in Sri Lanka and Indonesia respectively. Lululemon rival Gap said last week that it expects tariffs to cost its business $100 million to $150 million a year. Nike said it would also be raising prices on a wide range of products. It is not just clothing brands that have reacted to tariffs by hiking prices. Walmart revealed that it would be passing on some of the cost of tariffs to its shoppers . The grocery giant — which imports 60 percent of its goods from China — said the worst increases are still yet to come. 'The industry already has an affordability problem.' Toyota expects to pay $1.3 billion in tariff costs in April and May alone — and it's already forecasting a 20 percent drop in profits for the upcoming year.
Daily Mail
5 days ago
- Business
- Daily Mail
Lululemon sees stock plunge 20% as cult athleisure brand says it will raise prices
Lululemon's shares plunged 20 percent on Friday as the athleisure brand reels from the consequences of Trump's tariffs — and said it would up prices on some of its products. The brand — which has earnt a cult following among millennial and Gen Z exercise enthusiasts — beat Wall Street's expectations for its first quarter earnings, but cut its guidance for the rest of the year. Sales were only up 1 percent year over year, compared to the 3 percent predicted by analysts. The company said the 'dynamic macroenvironment' of tariffs and concerns about an economic downturn meant it has to readjust. This will involve 'strategic price increases' to offset the negative effects of tariffs, chief financial officer Meghan Frank told analysts on the first quarter earnings call. 'It will be price increases on a small portion of our assortments, and they will be modest in nature,' she said. The company has already faced criticism for the price of some of its items, including $128 yoga pants. The price hikes will begin within a matter of weeks, Frank added. CEO Calvin McDonald said he was 'not happy' about US growth figures and acknowledged that consumers are nervously pulling back their spending. Lululemon has been hit hard by Trump's trade policies as it sources from China, currently under a 30 percent tariff, and a range of other countries currently levied at 10 percent. Last year 40 percent of the company's products were manufactured in Vietnam, 17 percent in Cambodia and 11 percent in Sri Lanka and Indonesia respectively. Lululemon joins a host of retailers that have been forced to pull or revise their full-year guidance after Trump's chaotic tariff policies have upended business plans and trade relations. Macy's and Abercrombie & Fitch both slashed their profit outlooks, and American Eagle Outfitters pulled their full-year guidance completely. Lululemon rival Gap said last week that it expects tariffs to cost its business $100 million to $150 million a year. Nike said it would also be raising prices on a wide range of products. It is not just clothing brands that have reacted to tariffs by hiking prices. Last year 40 percent of the company's products were manufactured in Vietnam CEO Calvin McDonald said he was 'not happy' about US growth figures Walmart revealed that it would be passing on some of the cost of tariffs to its shoppers. The grocery giant — which imports 60 percent of its goods from China — said the worst increases are still yet to come. Car manufacturers such as Subaru and Toyota have both also said Americans will soon be paying more for their cars. '[Business is] not sustainable longer term without significant price increases,' Mark Templin, Toyota's chief operating officer for North America, said recently. 'The industry already has an affordability problem.' Toyota expects to pay $1.3 billion in tariff costs in April and May alone — and it's already forecasting a 20 percent drop in profits for the upcoming year.
